Several international and bilateral trade accords give Fijian firms privileged status. Other bilateral trade deals are being pursued, with diplomatic facilities opening in Brazil, Korea, the United Arab Emirates, Indonesia, and Ethiopia.
Fiji is a signatory to the following trade agreements
SPARTECA
SPARTECA, an advantageous nonreciprocal accord, was established in 1981 with Australia and New Zealand, including Fiji and other pacific island nations. All of Fiji’s products are duty-free and unrestricted in these two economies. Fiji’s second-biggest sector, textiles, clothes, and footwear, has benefited greatly from SPARTECA’s special bilateral trade agreement with Australia.
Fiji should amend SPARTECA’s rules of origin to boost market entry to Australia and New Zealand. Because Fijian manufacturers import most of their material supplies, they appear to have a tough time complying with SPARTECA’s stringent value-added regulatory standards.
Melanesian Spearhead Group Trade Agreement (MSG)
In April 1998, Fiji adopted the 1993 MSG (signed in 1996). The MSG proposes that duties be decreased and eventually eliminated, that no quantitative import limits on qualifying commodities be imposed, and that no new export bans or limitations be imposed. Tariffs were supposed to be eased away over nine years, with levels below 30% being eased out more rapidly. According to the officials, Fiji completed these tax reductions on time. Safety measures cover customs duties and trade restrictions. Affiliates can suspend tariff discounts on products from new and existing businesses for up to three years for economic growth goals.
Pacific Agreement on Closer Economic Relations (PACER)
The PACER deal, which was negotiated in August 2001 as an “umbrella” contract, went into effect in August 2002. It’s a protective strategy to safeguard other contracting party rights in FIC marketplaces by establishing a unified global market to boost economic possibilities and competitiveness
Pacific Island Countries Trade Agreement (PICTA)
The PICTA, established as a supplementary deal to PACER in August 2001, intends to create a single market by establishing a free trade zone between FICs. The PICTA was indeed only temporarily operational, even though it came into force and was aimed to be fully functional. Only Fiji and five other FICs have managed to pass the proposed legislation.
All import and export bans or limitations, such as tariffs, licenses, and other equivalent policies, as well as voluntary export limits, and organized marketing procedures, were to be eliminated immediately under the PICTA.
The Cotonou Agreement (CA)
The CA, which replaced the Lome Convention temporarily in March 2000, governed commercial ties between Fiji and the European Union. The CA ended after 2007. Non-reciprocal economic advantages were granted to Fiji in the duty-free entry of commercial, agronomic, and aquaculture items, subjected to restrictions. Bananas, sugar, beef, and veal, for example, were subject to “commodity protocols,” which limit market access.
EU Economic Partnership Agreement (EPA)
By substituting non-reciprocal with reciprocal choices between the EC and ACP countries, EPAs allow the CA to avoid non-WTO conformity. Fiji and the other 13 Pacific countries impacted decided to start negotiating a unified EPA in September 2004.
World Trade Organization Agreements
Trade on a Multilateral Level Multilateral commerce is centered on the World Trade Organization (WTO), founded in 1995 and to which Fiji was admitted in 1996. Through its methods and protocols, the WTO supports anti-discrimination, trade liberalization, and the removal of non-trade obstacles. As an active participant, Fiji strives to uphold and encourage these values. As a part of the Tiny Vulnerable Economies category, Fiji engages in the Doha Development Agenda (DDA) deliberations.
Members of the World Trade Organization (WTO) completed discussions on the Trading Facilitation Agreement (TFA), which went into effect in 2017. In May 2017, Fiji accepted the TFA, which the National Trade Facilitation Council is now administering. The TFA includes procedures for accelerating the transfer, discharge, and approval of commodities in transit. It also lays forth methods for active collaboration between immigration and other relevant agencies on problems of trade efficiency and tax conformity. In this regard, it also includes provisions for technical support and capacity building.
